Buying a used car on finance?? A few questions.

td23

Hi.

My current motor failed its MOT miserabley today and I think the time is right to be getting a new motor.

Basically, I checked my credit rating a few months ago, and it seems Ive been using a bank account since leaving school which does not appear on my credit report.

Im in employment and although Ive only been with my current employer a couple of months, Ive been in solid employment for the past two years.

So..Im assuming since my credit report is not showing any income at all, does this mean I definatley wont be accepted for car finance? Or is there a chance?

I would have around £1k and current MOT failure ( if px is accepted where I find my new car ) as a deposit, and actually paying the monthly payments would be no problem.

What are your thoughts?

Or could anyone recommend anyway of me getting the finance to buy a car?? My bank has said no to a loan already, after an initial check on me, not an actual application for a loan.

Thanks in advance.

Jamie1981

Different lenders have differing criteria to which they will lend.
For example, I bank with Natwest, they use a scoring system when lending to customers, for a personal unsecured loan you have to score 10 out of 12 minimum, but to get a credit card with them the score you need is at least 7.

I would suggest you find a vehicle you like and apply for finance, if it is rejected walk away and find some other means of funding a purchase.

I believe that applications for credit are recorded on your credit file and lots of unsuccessful applications will show desperation and not do your credit rating much good.

forgotmyname

If the bank refused, I presume that will show as a proper credit check and will deter future lenders.

Your might be looking at companies that are not as fussy but load the interest. So your paying a lot more back.

Take your £1000 and go and buy another car, Dont get a loan.

smitchy73

There is always finance from the dealers as well, they aren't usually quite as fussy, as they usually have the car as security, so you tend to pass with them easier.
It all depends on budget and whether going for new/nearly new/used etc, as forgetmyname above says may be better to use your £1000 think that can get you alot for your money if you have someone who can suss out a good apple in the barrel of bad one's!

thegirlintheattic

Finance shouldn't be an issue as long as you have a job.

forgotmyname

OH MY GOD... DONT DO IT..

Driving licence, One bill and a wage slip and you could drive away in a shiny but knackered runabout for only an arm and a leg a month.

Problem is the thing will bleed you dry. Especially after the 2nd month when you realise they now own both your arms and legs, Unless your an octopus of course.

30% - 50%+ May not look as bad as it really is when they tempt you with a shiny car for ONLY... ££ a week.

But the car will be worth £2000 and you will end up paying £5000+ for it.

If your not that young it could well be with you into retirement.

Take the money in your pocket and buy something cheap.